Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter

It is the last over of the cricket match, with India needing 17 go to win against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has actually made more than 10 employ the last thirty minutes - not to talk about the match but to keep modifying his bet.

Five minutes earlier his cash was on Australia, now as the Indian batsman prepares yourself to face the last over he's changed his mind.

"I believe India is winning, make the modification," he tells his bookie on the phone.

And a couple of minutes later on his prediction comes to life, as India wins the match in a nail-biting surface.

"I have made $200 today," he says with a childlike glee.

For more than 3 decades he's been banking on cricket matches. We can't expose his name as what he's doing is illegal in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, prohibited wagering syndicates thrive in the nation.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting wagering market deserves some $150bn a year. And much of that sports betting money is directed towards cricket.

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

Most of these transactions involve so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, however unlike in the US which has a law prohibiting web gambling, there is nothing comparable here.

And overseas sports betting business are utilizing this loophole to draw Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have signed up with offshore companies.

"Legally you can get away [with this], as the law is ambiguous for online gaming," says Mumbai- based legal representative HP Ranina.

But despite this, it is "offline gaming", done through phone calls which control the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to suggest changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have actually been prohibited for two years after some players and group authorities were condemned of fixing parts of the match at the behest of bookies.

The panel also argues that legalised sports betting will bring in tax profits for the exchequer that might total up to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a move in the ideal direction.

"I do not mind paying some money out my profits, as long as I can gamble publicly," says our cricket gambler.

It would likewise open a big service chance for licensed bookmakers and global online sports betting companies to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make transactions associated with sports betting more transparent.

"If you work alongside sports betting companies, you will have a very effective method of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise believe, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful sports betting since (some) people would not want to leave an audit path by getting in the white market," says Mr Oborne.

He adds that individuals who use unaccounted cash to position big bets will never bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a hard idea to offer.

"Despite the fact that numerous individuals are involved in some sort of gaming - it's still a questionable issue for numerous," says our unnamed punter.

And provided that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting in their area.

"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the idea having actually been backed by a main panel for the very first time, at least a debate has ignited around a topic - which until now was thought about a taboo.